ion 2-10 hbw 807 remodel warranty

TABLE OF CONTENTS

SECTION I Definitions

SECTION II Workmanship Coverage - 1-Year Warranty Term

SECTION III Systems Coverage -2-Year Warranty Term

SECTION IV Structural Coverage - 10-Year Warranty Term

SECTION V Requesting Warranty Performance

SECTION VI Repairs

SECTION VII Conditions

SECTION VIII Exclusions

SECTION IX Performance Guidelines

Congratulations! YYoouurr HHoommee IImmpprroovveemmeenntt has express limitedwarranty protection provided by a BBuuiillddeerr//CCoonnttrraaccttoorr enrolled in theHome Buyers Warranty ("2-10 HBW") Program. This is probablyone of the larger investments in YYoouurr home that YYoouu have made, andwe wish YYoouu many years of enjoyment.

A home is a unique product, one that requires YYoouurr proper care andmaintenance. Under the terms of this WWaarrrraannttyy, YYoouu are expected toprevent damage and to ensure proper functioning of YYoouurr HHoommeeIImmpprroovveemmeenntt and its various systems.

This warranty booklet and the Limited Warranty Coverage Validationform (HBW 820) explain the Express Limited Warranty(""WWaarrrraannttyy"") in its entirety and WE STRONGLY URGE YYOOUU TOREAD BOTH DOCUMENTS CAREFULLY.

This is an express limited WWaarrrraannttyy that YYoouurr BBuuiillddeerr//CCoonnttrraaccttoorr hasprovided with YYoouurr HHoommee IImmpprroovveemmeenntt and is not a service contract.The protection available under this express limited WWaarrrraannttyyis specif ically detailed in this warranty booklet. Briefly, thiscoverage includes:

1-Year WWoorrkkmmaannsshhiipp Coverage in accordance with the performance guidelines contained in this warranty booklet. 2-Year SSyysstteemmss Coverage in accordance with themechanical, electrical and plumbing systemsperformance guidelines contained in this warranty booklet.

And if your HBW 820 indicates 10-Year SSttrruuccttuurraall Coverage for structural defects meeting the SSttrruuccttuurraall DDeeffeecctt definition contained in this warranty booklet.

This WWaarrrraannttyy is a contract between YYoouu and YYoouurrBBuuiillddeerr//CCoonnttrraaccttoorr. 2-10 HBW is the WWaarrrraannttyy AAddmmiinniissttrraattoorr, butnot a warrantor under the contract. Take time now to read thisWWaarrrraannttyy booklet. Please familiarize YYoouurrsseellff with both the coverageprovided and the limitations on coverage.

Congratulations and enjoy YYoouurr new HHoommee IImmpprroovveemmeenntt!

2-10 HBW® Home Improvement Warranty Booklet

2-10 HBW is a registered service mark of Home Buyers Warranty Corporation.© 2003 Home Buyers Warranty Corporation.

HHOOMMEE BBUUYYEERRSS WWAARRRRAANNTTYY CCOORRPPOORRAATTIIOONNWarranty Administration Office

10375 E. Harvard Ave.Denver, CO 80231

720.747.6000

HBW 807 07/31/06

2

SECTION I -DEFINITIONS

Actual Physical Damage means a visually-observable, adverse condition evidenced by distortion, cracking or crushing in theDesignated Load-Bearing Members caused as a result of the Home Improvement.

Builder/Contractor means the builder, contractor, Home Improvement professional, remodeler or tradesperson(s) listed on theLimited Warranty Coverage Validation (HBW 820). The Builder/Contractor is the warrantor under this Warranty and isresponsible to You for fulfilling the express limited Warranty obligations identified on the Limited Warranty Coverage Validationform (HBW 820).

Builder/Contractor Application for Home Improvement Enrollment (HBW 802) is the agreement signed by You and theBuilder/Contractor before the Home Improvement was enrolled.

Consequential Damage means any damage that is not a result of a Deficiency or a Structural Defect or consequential loss whichincludes without limitation, damage to existing structure that was not part of the Home Improvement, damage as a result of age,condition, or adequacy of existing structure that was not included in the Home Improvement, damage to personal property, damage toproperty that You do not own, any bodily damage or personal injury of any kind, including physical or mental pain and suffering andemotional distress, any medical or hospital expenses, or lost profits.

Date of Completion means the earlier of the date on which You accept the Home Improvement and make final payment or the datethe Home Improvement is made available to You by the Builder/Contractor for first use.

Deficiency means the failure of the Home Improvements to comply with the Performance Guidelines in Section IX.

Designated Load-Bearing Members mean the following members that were added, altered, repaired or modified in performing theHome Improvement:

1. Footings and Foundation systems;2. Beams;3. Girders; 4. Lintels;5. Columns; 6. Walls and partitions;7. Roof framing systems; and 8. Floor systemsElements not included in this definition are described in Section IV.

Effective Date of Warranty means the Date of Completion of Your Home Improvement.

Home means the dwelling where the Home Improvement was performed.

Homeowner means the person(s) holding legal title to the home.

Home Improvement means any alteration, repair, or modification of an existing home performed by or on behalf of theBuilder/Contractor identified on the HBW 820 and described in the contract between You and Your Builder/Contractor. It doesnot include: repairs, modifications or alterations to existing home foundations and additions or improvements made to Your Home orHome Improvement after the Effective Date of Warranty.

Limited Warranty Coverage Validation (HBW 820) means the document which provides proof of express limited warranty coveragefor a certain address, and the scope of coverage provided by Your Builder/Contractor.

3

Performance Guidelines are the residential construction performance guidelines for professional builders and remodelers that havebeen developed and accepted by the residential construction and remodeling industry and published by the National Association ofHome Builders. They apply only to the 1-year Workmanship coverage and 2-year Systems coverage for a Home Improvement.

Structural Defect means Actual Physical Damage to the Designated Load-Bearing Elements of the Home Improvement causedby failure of such load-bearing elements which affects their load-bearing functions to the extent that your Home Improvementbecomes unsafe, unsanitary or otherwise unlivable. This definition is the same as that contained in the regulations of the Departmentof Housing and Urban Development in effect at the time of the issuance of this Warranty. If provided by Your Builder/Contractor,structural defect coverage is for a ten year Warranty Term.

Systems mean the wiring, piping and ductwork in the electrical, heating, cooling, ventilating, and mechanical systems that wereincluded in the Home Improvement as described in the contract between You and the Builder/Contractor. Systems coverage is fora two year Warranty Term.

Warranty means the Home Improvement Express Limited Warranty described in this Warranty booklet and the HBW 820.

Warranty Administrator means Home Buyers Warranty Corporation (“2-10 HBW”), a warranty administration company thatperforms certain tasks for the Warranty Insurer.

Warranty Insurer is the Builder/Contractor's Warranty Insurer as identified on the HBW 820.

Warranty Limit means the total final contract sales price of the Home Improvement as set forth on the HBW 820. The WarrantyLimit is an aggregate limit; each paid Workmanship, Systems, or Structural coverage claim reduce the Warranty obligations ofYour Builder/Contractor and Warranty Insurer.

Warranty Term means the period of time during which Warranty coverage is provided, which term commences on the EffectiveDate of Warranty. Requests for warranty performance under this Warranty must be made in accordance with Section V of thisWarranty booklet.

Workmanship means the site work, concrete, masonry, carpentry, moisture protection, doors, windows, finishes, specialties, cabinets,mechanical, and electrical components that were part of Your Home Improvement as described in the contract between You and theBuilder/Contractor. Workmanship coverage is for a one year Warranty Term.

You and Your means the Homeowner or the person(s) who holds legal title to the Home where the Home Improvementwas performed.

4

SECTION II - WORKMANSHIP COVERAGE - 1-YEAR WARRANTY TERM*(*Indiana residents: Please read Addendum at the end of Section VIII.)

Unless one or more of the Exclusions contained in Section VIII apply, for a Warranty Term of one (1) year, Your Builder/Contractorwarrants that the Workmanship of Your Home Improvement will conform to the applicable Performance Guidelines as set forthin Section IX.

Your Builder/Contractor agrees to repair Workmanship Deficiencies that occur during the one year Warranty Term.

SECTION III - SYSTEMS COVERAGE - 2-YEAR WARRANTY SYSTEM

Unless one or more of the Exclusions contained in Section VIII of this Warranty booklet apply, for a Warranty Term of two (2) years,Your Builder/Contractor warrants that the Systems of Your Home Improvement will conform to the applicable PerformanceGuidelines as set forth in Section IX.

Your Builder/Contractor agrees to repair Systems Deficiencies that occur during the two year Warranty Term.

SUPPLY PIPING

ELECTRICALWIRING

DUCTWORK

WASTE PIPING

ROOFING

CABINETS

COUNTERTOPS

SINK

TOILETCERAMIC TILE

DRYWALLS

DOOR PANELS

EXTERIORSIDING

HARDWOOD FLOOR/RESILIENT FLOORINGTILE

BASEMENT FLOOR

INTERIOR TRIM

PAINT

CARPET

NOTE: FOR ILLUSTRATION PURPOSESONLY. DRAWING IS DIFFERENT FROMTHE DESIGN AND CONSTRUCTION OFYOUR HOME IMPROVEMENT. ONLY AFEW OF THE ITEMS COVERED UNDERTHE ONE-YEAR WORKMANSHIPCOVERAGE ARE SHOWN. FOR A MOREDETAILED LISTING SEE THEPERFORMANCE GUIDELINES.

NOTE: FOR ILLUSTRATION PURPOSESONLY. DRAWING IS DIFFERENT FROMTHE DESIGN AND CONSTRUCTION OFYOUR HOME IMPROVEMENT. ONLYA F E W O F T H E I T E M S C OV E R E DU N D E R THE TWO-YEAR SYSTEMSCOVERAGE ARE SHOWN. FOR A MORED E T A I L E D L I S T I N G S E E T H EPERFORMANCE GUIDELINES.

5

SECTION IV - STRUCTURAL DEFECT COVERAGE - 10-YEAR WARRANTY TERM

If indicated on your HBW 820 and unless one or more of the Warranty Exclusions contained in Section VIII apply, for ten (10) yearsfrom the Effective Date of Warranty, your Builder/Contractor warrants your Home Improvement against Structural Defects.

“Designated Load-Bearing Members” are defined in Section 1 - Definitions.

Examples of elements, but not inclusive of all elements, of the Home Improvement that are not Designated Load-Bearing Membersand are not covered by this Structural Defect Coverage:

1. Non-load bearing walls and partitions;2. Wall tile and wall paper, etc.;3. Plaster, laths, and drywall;4. Flooring and sub-flooring material; 5. Brick, stucco, stone or veneer;6. Any type of exterior siding;7. Roof shingles, roof tiles, sheathing, and tar paper;8. Heating, cooling, ventilating, plumbing, electrical, and mechanical systems; 9. Appliances, fixtures, or items of equipment;10. Doors, trims, cabinets, hardware, insulation, paint and stains; and11. Basement and other interior floating, ground-supported concrete slabs.

ROOF FRAMING LOAD-BEARINGWALLS

BEAMS

FLOOR FRAMING

FOUNDATIONS

BEAMS

COLUMNS

NOTE: FOR ILLUSTRATION PURPOSESONLY. DRAWING IS DIFFERENT FROMTHE DESIGN AND CONSTRUCTIONOF YOUR HOME IMPROVEMENT.D R AW I N G S H OW S S O M E O F T H EDESIGNATED LOAD-BEARING MEMBERSC OV E R E D U N D E R T H E T E N - Y E A RS T R U C T U R A L C O V E R A G E .FOR MORE INFORMATION, SEE THEEXPLANATION BELOW.

6

SECTION V - REQUESTING WARRANTY PERFORMANCE

1-Year Workmanship Coverage and 2-Year Systems Coverage. To request Warranty performance under YourBuilder/Contractor's 1-year Workmanship coverage or 2-year Systems coverage, You must notify Your Builder/Contractor inwriting within the applicable Warranty Term. You should include a copy of Your HBW 820 form with Your notice. Your requestfor warranty performance should clearly describe the Deficiency in reasonable detail. Your Builder/Contractor is obligated to repair,replace, or pay You the reasonable cost of repair (at their option) if a covered Deficiency occurs.

If a request for warranty performance to Your Builder/Contractor does not result in satisfactory action within a reasonable time,written notice must be given to the Warranty Administrator. This notice should describe each Deficiency in reasonable detail andmust include a copy of all correspondence between You and the Builder/Contractor. The notice should be forwarded by certifiedmail, return receipt requested. A written request for warranty performance to the Warranty Administrator must be postmarked nolater than thirty (30) days after the expiration of the applicable Warranty Term. If the written notice is postmarked or received by theWarranty Administrator more than thirty (30) days beyond the Warranty Term, there will be no obligation to repair or pay for aDeficiency. Sending a notice to Your Builder/Contractor does not constitute notice to the Warranty Administrator.

Once the Warranty Administrator has received Your notification, the Warranty Administrator will again notify theBuilder/Contractor. If the Builder/Contractor and You are unable to resolve Your differences either by Yourselves or with the helpof the Warranty Administrator, You must arbitrate the dispute. The Warranty Administrator will provide a form to requestarbitration after You have followed the above procedures. If the Warranty Administrator determines that Your Builder/Contractorcannot or will not resolve the problem, arbitrate, comply with an arbitration award, or is found not to be in compliance with anarbitration award by an arbitrator, the Warranty Administrator will so notify You. You must then forward to the WarrantyAdministrator a onetime $250.00 claim deductible (check payable to the Warranty Insurer as stated on the HBW 820). TheWarranty Administrator will then forward Your claim to the Warranty Insurer. The Warranty Insurer will investigate the claimand repair, replace, or pay You the reasonable cost of repair (at their option) of a covered Deficiency.

10-Year Structural Coverage. If Your HBW 820 indicates that you have 10-year Structural Defect coverage, and You believe thatYour Home Improvement has a qualifying Structural Defect, You must notify the Warranty Administrator in writing, by certifiedmail, return receipt requested, within a reasonable time after You first notice the Structural Defect. You should include a copy ofYour HBW 820 with Your notice. If the written notice is postmarked or received by the Warranty Administrator more than thirty(30) days after the 10-year Warranty Term, there will be no obligation to pay, repair or replace the claimed Structural Defect.

The Warranty Insurer requires a claim investigation fee of $250.00 to be sent along with Your notice. The check should be madepayable to the Warranty Insurer as stated on the HBW 820 form, and Your notice and check should be forwarded to the WarrantyAdministrator. The Warranty Administrator will then forward Your claim and the investigation fee to the Warranty Insurer. TheWarranty Insurer will investigate the claim and repair, replace, or pay You the reasonable cost of repair (at their option) for thequalifying Structural Defect(s). The claim investigation fee will be refunded if a qualifying Structural Defect(s) exists in theHome Improvement.

What to do in Case of an Emergency: An emergency is a condition in a Home Improvement that if not immediately repaired maycause damage to the Home Improvement or danger to occupants. You must contact Your Builder/Contractor immediately. If Youare unable to contact Your Builder/Contractor, You must contact the Warranty Administrator in order to receive authorization tomake any emergency repairs. If neither Your Builder/Contractor nor the Warranty Administrator is available for emergencyauthorization, 1) You must make minimal repairs until authorization for more extensive repairs has been approved, 2) You must takeaction in order that further damage can be mitigated, and 3) You must report the emergency to the Warranty Administrator on thenext business day. Any unauthorized repairs will not be reimbursed unless You have followed the above procedures.

7

SECTION VI - REPAIRS

Your Warranty Insurer shall not be responsible for unauthorized repairs or replacement done by others or for the cost of suchunauthorized repairs or replacement.

1-Year Workmanship and 2- Year Systems CoverageThe Builder/Contractor or Warranty Insurer shall repair, replace, or pay You the reasonable cost of repair of anycovered item in Your Home Improvement not in conformance with the Performance Guidelines during theapplicable Warranty Term. The Performance Guidelines are found in Section IX. The choice as to the scope of repair, the repair technique, replacement, or payment in lieu of repair or replacement, isin the sole discretion of Your Builder/Contractor or Warranty Insurer. The Builder/Contractor or WarrantyInsurer shall have the sole right to select the contractors, subcontractors or tradespeople used in the repair orreplacement process. Repairs will meet locally accepted Building Codes in effect at the time of Your Home Improvement. TheBuilder/Contractor or Warranty Insurer is not obligated for any additional cost of repairs due to changes in theBuilding Codes implemented subsequent to the original construction of Your Home Improvement. Your Builder/Contractor or Warranty Insurer will try, to its best ability, to match colors, materials, and finishes.The Builder/Contractor or Warranty Insurer cannot be responsible for fading, discontinued patterns, or changesin dye lots.

10-Year Structural CoverageIf indicated on your HBW 820, Your Warranty Insurer shall repair, replace, or pay You the reasonable costof repair of a qualifying Structural Defect.

The choice as to the scope of repair, the repair technique, replacement, or payment in lieu of repair or replacement, isat the sole discretion of the Warranty Insurer. The Warranty Insurer shall have the sole right to select thecontractors, subcontractors or tradespeople used in the repair or replacement process. The repair of a Structural Defect is limited to:

1. The repair of Designated Load-Bearing Members, which is necessary to restore their load-bearing function; 2. The repair of non-load-bearing portions, items, or Systems of the Home Improvement, damaged by the

Structural Defect; and 3. The repair and cosmetic correction of only those surfaces, finishes, and coverings that were part of the Home

Improvement damaged by the Structural Defect or which require removal and replacement to repair the Structural Defect.

Repairs will meet locally accepted Building Codes in effect at the time of Your Home Improvement. The WarrantyInsurer is not obligated for any increase or additional cost of repairs due to changes in Building Codes implementedsubsequent to the original construction of Your Home Improvement. Repairs are intended to restore the Home or Home Improvement to approximately the condition just prior to the Structural Defect, but not necessarily to a like-new condition. The Warranty Insurer will try to its best ability tomatch colors, materials, and finishes and cannot be responsible for fading, discontinued patterns, or changes in dye lots.

SECTION VII - CONDITIONS

THIS IS AN EXPRESS LIMITED WARRANTY. To the extent possible under the law of your state**, all other warranties,express or implied, including but not limited to any oral or written statements or representations made by YourBuilder/Contractor or any other person, and any implied warranty of habitability, merchantability or fitness, are herebydisclaimed by Your Builder/Contractor and are hereby waived by You.(**California Residents: Please read ADDENDUM at the end of Section VIII.)

WARRANTY NOT INSURANCE. This Warranty is not an insurance policy. You should have homeowners insurance and this isnot it. This is also not Your Builder/Contractor's Commercial General Liability insurance policy. This Warranty is not amaintenance agreement or service contract.

8

WARRANTY OBLIGATIONS. The Warranty obligations of the Builder/Contractor and Warranty Insurer during the entireterm of the Warranty are limited to the final contract sales price, including original contract price, and price of any change orderssubsequent to the original contract of the Home Improvement as set forth on the HBW 820. The Builder/Contractor's or WarrantyInsurer's costs of designing, accomplishing and monitoring repairs to Your Home Improvement (or cash payment made in lieu ofrepair) will be deducted from the Warranty Limit. When the limit has been paid, Your Warranty rights are extinguished. TheBuilder/Contractor's or Warranty Insurer's obligations under this Warranty are excess of coverage provided by other warrantiesor insurance.

ACCESS TO YOUR HOME. In order for the Builder/Contractor or Warranty Insurer to carry out their responsibility under thiscontract, they will require access to Your Home Improvement from time to time. By signing the Builder/Contractor ApplicationFor Home Improvement Enrollment or by seeking benefits under this Warranty, You agree to grant access to YourBuilder/Contractor or the Warranty Insurer and their agents during normal business hours to inspect, repair and conduct tests inYour Home Improvement as in their judgment may be required. Failure to allow access to Your Home Improvement will eliminatethe Builder/Contractor’s and the Warranty Insurer’s obligation under this limited Warranty.

ARBITRATION. Any and all claims, disputes and controversies by or between the Homeowner, theBuilder/Contractor, the Warranty Insurer and/or 2-10 HBW, or any combination of the foregoing, arising fromor related to this Warranty, to the subject Home Improvement, to any defect in or to the subject Home or the realproperty on which the subject Home Improvement is situated, including without limitation, any claim of breach ofcontract, negligent or intentional misrepresentation or nondisclosure in the inducement, execution or performanceof any contract, including this arbitration agreement, and breach of any alleged duty of good faith and fair dealing,shall be settled by binding arbitration. Agreeing to arbitration means you are waiving your right to a jury trial.

The arbitration shall be conducted by the American Arbitration Association pursuant to its Construction IndustryArbitration Rules in effect at the time of the Effective Date of Warranty; or by Construction Arbitration Services,Inc., pursuant to its applicable rules in effect at the time of the Effective Date of Warranty; or by DeMars &Associates, Ltd. pursuant to its applicable rules in effect at the time of the Effective Date of Warranty. The choiceof arbitration service shall be that of the Homeowner if the Homeowner is a claimant. If the Homeowner is not aclaimant, the choice of arbitration service shall be that of the Builder/Contractor. Any dispute concerning thechoice of an arbitration service shall be submitted to a court of competent jurisdiction, which shall have authorityto enforce this paragraph. A court of competent jurisdiction shall also have authority to select an arbitrationservice for parties not specifically identified in this paragraph.

This arbitration agreement shall inure to the benefit of, and be enforceable by, the Builder's/Contractor'ssubcontractors, agents, vendors, suppliers, design professionals, insurers and any other person alleged to beresponsible for any defect in or to the subject Home Improvement or the real property on which the subject HomeImprovement is situated. Any party shall be entitled to recover reasonable attorney's fees and costs incurred inenforcing this arbitration agreement. The decision of the arbitrator shall be final and binding and may be enteredas a judgment in any State or Federal court of competent jurisdiction.

This arbitration agreement shall be deemed to be a self-executing arbitration agreement. Any disputes concerningthe interpretation or the enforceability of this arbitration agreement, including without limitation, its revocabilityor voidability for any cause, the scope of arbitrable issues, and any defense based upon waiver, estoppel or laches,shall be decided by the arbitrator.

The initiation of or participation by any party in any judicial proceeding concerning this arbitration agreement orany matter arbitrable hereunder shall not be deemed a waiver of the right to enforce this arbitration agreement,and notwithstanding any provision of law to the contrary, shall not be asserted or accepted as a reason to delay, torefuse to participate in, or to refuse to enforce this arbitration agreement.

The arbitrator shall possess sufficient knowledge in the residential construction industry as determined by thearbitration service. The arbitration hearing shall occur whenever possible in the home which is the subject ofthe arbitration.

9

All administrative fees of the arbitration service and fees of the arbitrator shall be borne equally by the parties tothe arbitration, subject to the discretion of the arbitrator to reallocate such fees in the interests of justice.

The Warranty Insurer shall have the right, in advance of the arbitration proceeding, to reinspect any HomeImprovement which is the subject of the arbitration proceeding if the request for arbitration was made more thansixty (60) days following the last claim decision of Warranty Insurer concerning such Home. No arbitrationproceeding shall involve more than one single-family detached dwelling.

The parties expressly agree that this Warranty and this arbitration agreement involve and concern interstatecommerce and are governed by the provisions of the Federal Arbitration Act (9 U.S.C. § 1, et seq.) now in effectand as the same may from time to time be amended, to the exclusion of any different or inconsistent state or locallaw, ordinance or judicial rule; and to the extent that any state or local law, ordinance or judicial rule shall beinconsistent with any provision of the rules of the arbitration service under which the arbitration proceeding shallbe conducted, the latter rules shall govern the conduct of the proceeding.

If any provision of this arbitration agreement shall be determined by the arbitrator or by any court to beunenforceable or to have been waived, the remaining provisions shall be deemed to be severable therefrom andenforceable according to their terms.

WARRANTIES TRANSFERABLE. All of Your rights and obligations hereunder shall fully transfer to each successor in title to theHome where the Home Improvement was performed, including any mortgagee in possession, for the remainder of the WarrantyTerm and any such transfer shall in no way affect or reduce the coverage under this Warranty for its unexpired term. There is no limitto the number of such transfers during the Warranty Term, nor any cost hereunder as a result of such successions. If You sell Yourhome during the Warranty Term, You agree to give this Warranty to Your buyer, to inform Your buyer of warranty rights and tomake it possible for the buyer to fulfill the obligations under the terms of this Warranty. If You are a subsequent owner of the home(that is, an owner other than the original Home Improvement purchaser), Your Home Improvement may benefit from the coverageprovided by this Warranty. Likewise, You are also bound by all the terms and conditions of the Warranty, including but not limitedto requesting warranty performance and participation in binding arbitration.

While this Warranty is transferable to subsequent buyers, the Builder/Contractor or Warranty Insurer are not responsible for anyrepresentation or misrepresentation made by You to any subsequent buyer of the home where the Home Improvement was performed.

PAYMENTS AND REPAIRS. At the time of payment in lieu of repairs, You must sign and deliver to Your Builder/Contractor orWarranty Insurer, as applicable, a full and unconditional release for all parties, in recordable form, of all legal obligations with respectto the Warranty and any condition arising therefrom.

If the Builder/Contractor or Warranty Insurer repairs, replaces or pays You the reasonable cost to repair or replace a warranteditem, the Builder/Contractor or Warranty Insurer shall be subrogated to all Your rights to recover against any person or entity. Youmust execute and deliver any and all instruments and papers and take any and all actions necessary to secure such rights, including, butnot limited to, assignment of proceeds of any insurance or other warranties to the Builder/Contractor or Warranty Insurer. You shalldo nothing to prejudice these rights of subrogation.

Actions taken by the Builder/Contractor or Warranty Insurer to make repairs hereunder will not extend period of coverage underthis Warranty.

SECTION VIII - EXCLUSIONSThis Warranty does not provide any coverage for the following items, which are specifically excluded:

1. Repairs, modifications, or alterations of existing foundations, including stabilization, re-leveling, crack repair, repairto bowed or buckling foundation walls; and any damage caused by such repairs;

2. Damage to Your Home Improvement caused by movement of a foundation not installed by Builder/Contractor; 3. Damage to land or other real property that is not part of Your Home; 4. Damage to common elements in multi-family structures; 5. Damage to swimming pools and other recreational facilities, driveways, walks, and roads; 6. Damage caused by or changes in the level of underground water table, which were not reasonably foreseeable at the

time of construction of Your Home Improvement; 7. Loss or damage which arises while Your Home Improvement is being used primarily for nonresidential purposes; 8. Failure of Your Builder/Contractor to complete Your Home Improvement; 9. Noncompliance with plans and specifications; failure to obtain variances; violations of local or national building

codes, ordinances, standards, or variances; however, this exclusion does not apply if the noncompliance or violationresults in a qualifying Deficiency or Structural Defect under this Warranty;

10. Any condition which has not resulted in Actual Physical Damage to Your Home Improvement;however this exclusion does not apply if the condition results in a Deficiency covered in the Performance Guidelines (Section IX);

11. Any loss or damage that is caused or made worse by any of the following causes, whether acting alone or insequence or concurrence with any other cause or causes whatsoever, including without limitation, any act, omissionor negligence of any person:

a) Negligence, improper maintenance, defective material or work supplied by, or improper operation by,anyone other than Your Builder/Contractor or its employees, agents or subcontractors, including failure to comply with the warranty requirements of manufacturers of appliances, equipmentor fixtures;

b) Age, condition, or adequacy of existing structure, electrical, plumbing, heating, cooling, ventilating, ormechanical systems which were not part of Your Home Improvement, including any loss or damagecaused by failure of exis ting structure to support additional loads of Your Home Improvement;

c) Your failure to give prompt and proper notice to the Builder/Contractor or Warranty Insurer of anyDeficiency or Structural Defect;

d) Change of the grading of the ground that does not comply with accepted grading practices by anyoneother than Your Builder/Contractor, or failure to maintain the grade;

e) Riot or civil commotion, war, vandalism, hurricane, tornado or other windstorm, fire, explosion,blasting, smoke, water escape, flood, waves, tidal water, overflow of a body of water, wind-driven rain or snow, hail, ice storm, lightning, falling trees or other objects, aircraft, vehicles, mudslide,avalanche, earthquake, or volcanic eruption;

f) Abuse or use of Your Home Improvement, or any part thereof, beyond the reasonable capacity of suchpart for such use;

g) Microorganisms, fungus, decay, wet rot, dry rot, soft rot, rotting of any kind, mold, mildew, waterescape, vermin, termites, insects, pests, rodents, birds, wild or domestic animals, plants, corrosion, rust, radon, radiation, formaldehyde, lead, asbestos, any solid, liquid or gaseous pollutant, contaminant,

toxin, irritant or carcinogenic substance, whether organic or inorganic, and electromagnetic field or emission, including any claim of health risk or uninhabitability based on any of the foregoing;

h) Your failure to minimize or mitigate any defect, condition, loss or damage as soon as practicable; 12. Any loss or damage caused by buried debris, underground springs, sinkholes, mineshafts or other anomalies that

were not reasonably foreseeable; 13. Any request for Warranty performance submitted to the Builder/Contractor or Warranty Insurer after an

unreasonable delay or later than 30 days after the expiration of the applicable Warranty Term; 14. Loss caused in whole or in part, by any peril or occurrence for which compensation is provided by state legislation

or public funds; 15. Any loss or damage to the extent the loss or damage is covered by any other insurance, whether primary, excess,

pro-rata or contingent; 16. Costs of shelter, transportation, food, moving, storage, or other incidental expenses related to relocation during

repair, or any other costs due to loss of use, inconvenience, or annoyance; 10

11

17. Diminished market value of Your Home or Home Improvement; 18. Any and all Consequential Damages; 19. Any manufactured item of equipment, appliances, or any other consumer product covered by a manufacturer's

warranty. Examples of non-covered items under this Warranty which are covered by separate manufacturer's warranties include, but are not limited to: air-conditioning units, boilers, central vacuum systems, dishwashers, dryers, electric meters, exhaust fans, furnaces, heat pumps, garage door openers, ranges, range hoods, refrigerators, swimming pools, saunas, sump pumps, thermostats, trash compactors, washers, water heaters, and whirlpool baths.Manufacturer's warranties on these items are assigned and passed through to You by Your Builder/Contractor atcompletion of the construction, and are separate from this Warranty. Should You find defects in any item of equipment, appliance, or any other item covered by a manufacturer's warranty, You must follow the procedures setforth in the manufacturer's warranty to correct the problem.

20. Any and all exclusions set forth in Section IX (Performance Guidelines);

ADDENDUM*Indiana: State of Indiana Only - If your HBW 820 indicates Your Builder is providing Two Year Workmanship, Two Year Systemsand Four Year Roof Warranty coverage, Your Builder/Contractor warrants that Your Home will be free from Defects in materialand workmanship for two years instead of one year as stated in the Performance Guidelines; and the roof will be free from Defectsin faulty workmanship or defective materials for four years from the Effective Date of Warranty.**California: State of California Only - The protection provided under this Warranty is not in limitation of, but is in addition to,any other rights provided to You under California law.**Kansas: State of Kansas Only - You have not waived the implied warranties and the Limited Warranty is not Your exclusiveremedy. You may have other remedies as provided to You under Kansas law.

SECTION IX - PERFORMANCE GUIDELINESThe following Performance Guidelines are standards that have been developed and reviewed by Home Improvement professionals,builders, and remodeling contractors across the United States. They apply only to the 1-year Workmanship and 2-year SystemsCoverage. The Performance Guidelines, which are incorporated by reference into this Warranty, provide guidelines as to what Youmay reasonably expect in terms of the performance of Your Home Improvement, and specifically what is considered a Deficiency,and therefore, covered during the Warranty Term. Additionally, You will find the Performance Guidelines helpful in determiningwhat is customary and normal in a material or an aspect of Your Builder/Contractor's construction process. You should note thatsome of the guidelines describe Your responsibility for the care, maintenance, and upkeep of Your Home Improvement, and that theBuilder/Contractor or Warranty Insurer is not responsible to make repairs that fall within Your responsibilities. Items in the Homenot part of Your Home Improvement as described in the contract between You and Your Builder/Contractor are not covered underthis Warranty.

While it is virtually impossible to develop a Performance Guideline for each possible Deficiency, these guidelines have attempted to isolatethe most common deficiencies that occur and in so doing, list the extent of Your Builder/Contractor's or Warranty Insurer's responsibilityand Your responsibility. Where a specific Performance Guideline has not been specified, the guidelines found in the publication ResidentialConstruction Performance Guidelines For Professional Builders & Remodelers, 2nd Edition, National Association of Home Builders,(NAHB) 2000, will apply. Copies of this publication may be special ordered through most book retailers, or purchased directly from theNAHB Bookstore by calling 1-800-223-2665. The NAHB Bookstore may also be reached online at www.BuilderBooks.com. If an item isnot covered in that publication, locally accepted trade practices of the construction industry will be used.

12

Items covered under the Performance Guidelines have been organized by major categories as follows:

1-Year Workmanship Coverage1. Site Work 2. Concrete 3. Masonry 4. Carpentry 5. Thermal and Moisture Protection 6. Doors and Windows 7. Finishes 8. Specialties 9. Cabinets and Vanities 10. Mechanical 11. Electrical Components

2-Year Systems Coverage1. Mechanical 2. Electrical Systems

The following Performance Guidelines are expressed in terms of required guidelines that Your Builder/Contractor's construction shouldmeet. Noncompliance with these construction guidelines calls for corrective action by Your Builder/Contractor or Warranty Insurer.

13

ITEMS COVERED UNDER THE 1-YEAR WORKMANSHIP COVERAGE

Deficiency Performance Guidelines Builder/Contractor Responsibility Exclusion

1. Site Work1.1 GradingSettling of ground around foundation,utility trenches or other areas on theproperty where excavation and backfillhave taken place that affect drainageaway from Home Improvement.

1.2 DrainageImproper surface drainage.

Soil erosion.

1.3 LandscapingGrassed or landscaped areas, which aredisturbed or damaged due to workperformed by Builder/Contractor onthe property in correcting a deficiency.

Outdoor plants, shrubs, or trees thatare installed by theBuilder/Contractor die after HomeImprovement is completed.

Settling of ground around foundationwalls, utility trenches or other filledareas that exceeds a maximum of sixinches from finished gradeestablished by Builder/Contractor.

Necessary grades and swales shall beestablished to provide proper drainageaway from the Home Improvement.Site drainage, under this Warranty, islimited to grades within 10-feet andswales within 20-feet of thefoundation of the HomeImprovement. Standing or pondingwater shall not remain in these areasfor a period longer than 24-hours aftera rain, except in swales that drainfrom adjoining properties or where asump pump discharges. In these areasan extended period of 48-hours is tobe allowed for water to dissipate. Thepossibility of standing water after anunusually heavy rainfall should beanticipated and is not to be considereda deficiency. No gradingdetermination is to be made whilethere is frost or snow or when theground is saturated.

NONE. NO COVERAGE.

Landscaped areas that are disturbedduring repair work are deficiencies.

Plants shall not die during thewarranty period. Plants that die fromnatural causes or owner negligenceare not covered.

If Builder/Contractor has providedfinal grading, Builder/Contractor shallfill settled areas affecting properdrainage, one time only, during thefirst year Warranty period.Homeowner is responsible forremoval and replacement of shrubsand other landscaping affected byplacement of the fill.

Builder/Contractor is only responsiblefor initially establishing the propergrades, swales and drainage away fromHome Improvement. The Homeowneris responsible for maintaining suchgrades and swales once constructed bythe Builder/Contractor.

Builder/Contractor is not responsiblefor drainage deficiencies attributable tograding requirements imposed by state,county, or local governing agencies.

NONE. Builder/Contractor is notresponsible for soil erosion due to actsof God or other conditions beyond theBuilder/Contractor's control.

Restore grades, seed and landscape tomeet original condition.Builder/Contractor is not responsiblefor grassed or landscaped areas,which are damaged by others,including any work performed bypublic or private utility companies.

Builder/Contractor will replace deadplants covered by the PerformanceGuideline with other plants of like kindor as close as reasonably available.

Standing or ponding water outside ofdefined swales and beyond 10-feetfrom the foundation of the Home, orthat is within 10-feet but is caused byunusual grade conditions, orretention of treed areas, is notconsidered a deficiency.

Standing or ponding water caused bychanges in the grade or placement ofsod, fencing, or any other obstructionsby Homeowner is excluded fromWarranty Coverage

Soil erosion and runoff caused byfailure of the Homeowner to maintainthe properly established grades,drainage structures and swales;stabilized soil, sodded, seeded andlandscaped areas; are excluded fromWarranty Coverage.

Replacement of trees and large bushesthat existed at the time HomeImprovement was constructed orthose added by the Homeowner orthose that subsequently die areexcluded from Warranty Coverage.

14


2. Concrete2.1 Cast-In Place ConcreteBasement or foundation wall cracks,other than expansion or control joints.

Cracking of basement floor.

Cracking of attached garage floor slab.

Cracks in concrete slab-on-gradefloors, with finish flooring.

Uneven concrete floor slabs.

Interior concrete work is pitting,scaling, or spalling.

Separation of brick or masonry edgingfrom concrete slab or step.

Cracking, settling or heaving ofstoops and steps.

2.2 Construction and Control JointsSeparation or movement of concreteslabs within the structure atconstruction and control joints.

Concrete cracks greater than 1/8-inchin width, or which allow exterior waterto leak into basement, are deficiencies.

Minor cracks in concrete basementfloors are common. Cracks exceeding3/16-inch in width or 3/16-inch invertical displacement are deficienciesif the slab is in conditioned space.

Minor cracks in concrete garage floorsare common. Cracks exceeding 3/16-inch in width, or 1/8-inch in verticaldisplacement are deficiencies.

Cracks that rupture or significantlyimpair the appearance orperformance of the finish flooringmaterial are deficiencies.

Except for basement floors or where afloor or a portion of floor has beendesigned for specific drainagepurposes, concrete floors in roomsfinished for habitability byBuilder/Contractor shall not have pits,depressions or area or unevennessexceeding 3/8-inch in 32-inches.

Interior concrete surfaces thatdisintegrate to the extent that aggregateis exposed and loosened under normalconditions of use are deficiencies.

It is common for the joint to crackbetween concrete and masonry due tothe dissimilarity of the materials.Cracks in excess of 1/4-inch area deficiency.

Stoops and steps that have settled,heaved, or separated in excess of1-inch from Home Improvement area deficiency

NONE. NO COVERAGE.

Repair non-structural cracks bysurface patching. These repairs shouldbe made toward the end of the firstyear of the Warranty to permit normalstabilizing of the Home Improvementby settling.

Repair cracks exceeding maximumtolerance by surface patching or othermethods, as required.

Repair cracks exceeding maximumtolerance by surface patching or othermethods, as required.

Repair cracks as required so as not tobe apparent when the finish flooringmaterial is in place. Repair or replacefinish flooring.

Repair/replace to meet the Standard.Where applicable, surface patching isan accepted method of repair.Reinstall or replace any finishflooring material as necessary.

Builder/Contractor shall takewhatever corrective action isnecessary to repair or replacedefective concrete surfaces.

Grout crack fully and reset loosemasonry where required.Replacement of masonry material, ifrequired, shall match the existing asclosely as possible.

Builder/Contractor shall take whatevercorrective action is necessary to meetthe Performance Guideline.

NONE.

Shrinkage cracks are not unusualand are inherent in the concretecuring process.

Builder/Contractor is not responsiblefor deterioration caused by salt,chemicals, mechanical implements, orother factors beyond theBuilder/Contractor's control.

Concrete slabs within the structure aredesigned to move at construction andcontrol joints and are not deficiencies.The Homeowner is responsible formaintenance of joint material.


15


3. Masonry3.1 Unit Masonry (Brick, Blockand Stone)Cracks in masonry, brick, or stone veneer.

Cracks in concrete block basement walls.

Concrete block basement wall is bowed.

3.2 Stucco and Cement PlasterCracking or spalling of stucco andcement plaster.

Separation of coating from base onexterior stucco wall.

4. Carpentry4.1 Rough CarpentryFloors squeak, due to improperinstallation or loose subfloors.

Small hairline cracks resulting fromshrinkage are common in mortarjoints of masonry construction.Cracks greater than 1/4-inch in widthare deficiencies.

Small shrinkage cracks that do notaffect the structural ability ofmasonry foundation walls are notunusual. Cracks 1/4-inch or greaterin width are deficiencies.

Block concrete walls shall not bow inexcess of 1-inch in 8 feet whenmeasured from the base to the top ofthe wall.

Hairline cracks in stucco or cementplaster are common especially if applieddirectly to masonry back-up. Cracksgreater than 1/8 inch in width or spallingof the finish surfaces are deficiencies.

The coating shall not separate fromthe base on an exterior stucco wall.

Loud and objectionable squeakscaused by improper installation orloose subfloors are deficiencies, buta totally squeak-proof floor cannotbe guaranteed.

Builder/Contractor will repair cracksgreater than 1/4-inch by tuck pointingand patching. These repairs should bemade toward the end of the first yearof Warranty Coverage to permitHome Improvement to stabilize andnormal settlement to occur.Builder/Contractor is not responsiblefor color variations between existingand new mortar.

Builder/Contractor shall investigate todetermine cause. Builder/Contractorshall take the necessary steps to removethe cause and make repairs by pointingand patching, reinforcement orreplacement of the defective courses.

Builder/Contractor shall repairbasement walls that are bowed inexcess of 1-inch in 8 feet.

Scrape out cracks and spalled areas.Fill with cement plaster or stucco tomatch finish and color as closeas possible.

Builder/Contractor shall repair areaswhere the coating has separated fromthe base.

Builder/Contractor will refasten anyloose subfloor or take other correctiveaction to reduce squeaking to theextent possible within reasonablerepair capability without removingfloor and ceiling finishes.

Builder/Contractor is not responsiblefor failure to match color or texture,due to nature of material.

Builder/Contractor is not responsiblefor failure to match color or texture,due to the nature of the material.

Floor squeaks may occur when asubfloor that has come loose from thejoists is deflected by the weight of aperson and rubs against the nails thathold it in place. Squeaks may alsooccur when one joist is deflectedwhile the other members remainstationary. Because the ConstructionStandard requires theBuilder/Contractor to make areasonable attempt to eliminatesqueaks without requiring removal offloor and ceiling finishes, nailingloose subflooring with casing nailsinto the carpet surface andcountersinking the head is anacceptable practice.


16


Uneven wood framed floors.

Wood flooring is unlevel at transitionfrom existing flooring to roomaddition floor.

Bowed stud walls or ceilings.

Wood frame walls out of plumb.

Wood beam or post is split.

Exterior sheathing and subflooringwhich delaminates or swells.

Wood frame walls out of square.

4.2 Finish CarpentryUnsatisfactory quality of finishedexterior trim and workmanship.

Unsatisfactory quality of finishedinterior trim and workmanship.

Wood floors shall not have more thana 1/4-inch ridge or depression withinany 32-inch measurement.

Flooring at transition area shall notslope more than 1/8 inch over sixinches unless a threshold is added.Overall step down, unlesspreviously agreed upon with theBuilder/Contractor shall not exceed1 1/8 inches.

All interior and exterior frame walls orceilings have slight variations on thefinish surfaces. Walls or ceilings thatare bowed more than 1/2-inch within a32-inch horizontal measurement; or1/2-inch within any 8-foot verticalmeasurement, are deficiencies.

Wood frame walls that are more than3/8-inch out of plumb for any 32-inchvertical measurement are a deficiency.

Beams or posts, especially those2 1/2-inches or greater in thickness,will sometimes split as they drysubsequent to construction. Unfilledsplits exceeding 1/4-inch in width andall splits exceeding 3/8-inch in widthare deficiencies.

Sheathing and subflooringdelaminating or swelling on the sidethat the finish material has beenapplied is a deficiency.

The diagonal of a triangle with sides of12-feet and 16-feet along the edges ofthe floor shall be 20-feet plus or minus1/2-inch.

Joints between exterior trimelements and siding or masonry,which are in excess of 1/4-inch, aredeficiencies. In all cases, the exteriortrim abutting masonry siding shallbe capable of performing its functionto exclude the elements.

Joints between moldings and adjacentsurfaces that exceed 1/8-inch in widthare deficiencies.

Correct or repair to meet thePerformance Guideline.

Builder/Contractor will addthreshold or transition material, orpull up the flooring and reduce thehigh spot, or if possible, shim undernew framing to bring floor withinPerformance Guideline.

Exterior and interior frame walls orceilings bowed in excess of theallowable standard shall be correctedto meet the allowances of thePerformance Guideline.

Make necessary repairs to meet thePerformance Guideline.

Builder/Contractor shall repair orreplace as required. Filling splits isacceptable for widths up to 3/8-inch.

Builder/Contractor shall repair orreplace subflooring or sheathing asrequired. Replacement of the finishmaterials, when necessary, shall bedone to match the existing finish asclosely as possible.

Builder/Contractor shall makenecessary modifications to any floornot complying with thePerformance Guidelines.

Repair open joints and touch upfinish coating where required tomatch existing as closely aspossible. Caulk open joints betweendissimilar materials.

Repair defective joints and touch upfinish coating where required tomatch as closely as possible. Caulkingis acceptable.

All floor joists shrink both seasonallyand when aging. Variations caused byseasonal changes are not a deficiency.

Some characteristics of drying woodare beyond the control of theBuilder/Contractor and cannotbe prevented.



Interior trim is split.

Hammer marks visible on interior trim.

Exposed nail heads in woodwork.

5. Thermal and Moisture Protection5.1 WaterproofingLeaks in basement or in foundation/crawl space.

5.2 InsulationInsufficient insulation.

NONE. NO COVERAGE.

Hammer marks on interior trim shallnot be readily visible from a distance of6 feet under normal lighting conditions.

Setting nails and filling nail holes areconsidered part of painting andfinishing. After painting or finishing,nails and nail holes shall not bereadily visible from a distance of 6feet under normal lighting conditions.

Leaks resulting in actual trickling ofwater through the walls or seepingthrough the floor are deficiencies.

Insulation that is not installed aroundall habitable areas in accordance withestablished local industry standards isa deficiency.

NONE.

Builder/Contractor shall fill hammermarks and refinish or replace affectedtrim to meet the PerformanceGuideline. Refinished or replacedareas may not match surroundingareas exactly.

Fill nail holes where required and ifnecessary, touch up paint, stain, orvarnish to match as closely as possible.

Take such action as is necessary tocorrect basement and crawl spaceleaks, except where the cause isdetermined to be the result ofHomeowner negligence. Where a sumppit has been installed byBuilder/Contractor in the affected areabut the sump pump was not contractedfor or installed by Builder/Contractor,no action is required until theHomeowner installs a properly sizedpump in an attempt to correct thecondition. Should the conditioncontinue to exist, thenBuilder/Contractor shall take necessaryaction to correct the problem.

Builder/Contractor shall installinsulation of sufficient thickness andcharacteristics to meet the localindustry standards. In the case ofdispute, cost for investigating thesufficiency of insulation and restoringareas to prior condition is to be borneby Homeowner if it is found that thestandard has been met byBuilder/Contractor.

Splits, cracks, and checking are inherentcharacteristics of all wood products, andare not considered deficiencies.

Nail holes do not have to be filledwhere the surface finish is notconducive or so designed to have nailholes filled because of the product.Nail holes in base and trim inunfinished rooms or closets do nothave to be filled.

Leaks caused by landscapingimproperly installed by theHomeowner or failures by theHomeowner to maintain propergrades are excluded from WarrantyCoverage. Dampness in basement andfoundation walls or in concretebasement and crawl space floors isoften common to new constructionand is not a deficiency.

Leaks and any resulting damage tofinished basement areas due toinadequate foundation waterproofingor drainage system original to Homeare excluded from Warranty Coverage,unless Builder/Contractor installed newwaterproofing or drainage system aspart of Home Improvement.


17

18


5.3 Ventilation and Moisture ControlInadequate ventilation or moisturecontrol in crawl spaces.

Inadequate ventilation or moisturecontrol in attics or roofs.

Attic vents or louvers leak.

Bath or kitchen exhaust fansimproperly vented into attic.

5.4 SealantsWater or air leaks in exterior wallsdue to inadequate caulking.

5.5 Exterior SidingDelamination, splitting, or deteriorationof exterior siding.

Loose or fallen siding.

Crawl spaces shall have adequateventilation to remove moisture orother approved method of moisturecontrol. Ventilation or other moisturecontrol methods shall be consideredinadequate if there is damage tosupporting members or insulation dueto moisture accumulation.

Attics or roofs shall have adequateventilation to remove moisture, orother approved method of moisturecontrol. Ventilation or other moisturecontrol methods shall be consideredinadequate if there is damage tosupporting members or insulation dueto moisture accumulation.

Attic vents and louvers shall not leak.

Bath or kitchen exhaust fans that arevented into attics causing moistureto accumulate resulting in damage tosupporting members or insulationare deficiencies.

Joints and cracks in exterior wallsurfaces and around openings that arenot properly caulked to exclude theentry of water or excessive drafts area deficiency.

Exterior siding that delaminates, splitsor deteriorates is a deficiency.

All siding that is not installedproperly, which causes it to comeloose or fall off, is a deficiency.

Builder/Contractor shall investigateto determine cause, and makenecessary repairs. Corrective actionmay include the installation ofproperly sized louvers, vents, vaporbarrier, or other locally approvedmethod of moisture control.

Builder/Contractor shall investigateto determine cause, and makenecessary repairs. Corrective actionmay include the installation ofproperly sized louvers, vents, vaporretarder, or other locally approvedmethod of moisture control.

Builder/Contractor shall repair orreplace the roof vents as necessary tomeet the Performance Guideline.

Builder/Contractor shall ventexhaust fans to the outside tocorrect deficiencies.

Repair and/or caulk joints in exteriorwall surfaces as required to correctdeficiency one time only during thefirst year of Warranty Coverage.

Repair/replace only the damagedsiding. Siding to match the original asclosely as possible, however, theHomeowner should be aware that thenew finish may not exactly match theoriginal surface texture or color.

Reinstall or replace siding and makeit secure.

Temporary conditions may causecondensation in crawl spaces thatcannot be eliminated by ventilationand/or vapor barrier. Night air maycool foundation walls and provide acool surface on which moisture maycondense. In homes that are leftunheated in the winter, the undersideof floors may provide a cold surfaceon which warmer crawl space air maycondense. These and other similarconditions are beyond theBuilder/Contractor's control.Maintaining adequate heat andseasonal adjustment of vents is theresponsibility of the Homeowner.

The Homeowner is responsible forkeeping existing vents unobstructed.

Locally approved and properlyconstructed "hot roof" or otheralternative roof designs may notrequire ventilation, and where there isno evidence of moisture damage tosupporting members or insulation, arenot deficiencies.

Infiltration of wind-driven rain andsnow are not considered leaks and arebeyond the control of theBuilder/Contractor.

The Homeowner must maintaincaulking once the conditionis corrected.

The Homeowner must maintaincaulking once the condition is corrected.

Delaminated siding due toHomeowner's actions or neglect, suchas delamination caused by sprinklersystem repeatedly wetting siding, isnot a deficiency.

Loose or fallen siding due toHomeowners actions or neglect, suchas leaning heavy objects against siding,impact, or sprinkler systems repeatedlywetting siding, is not a deficiency.


19


Siding is bowed.

Nails have stained siding.

5.6 RoofingRoof or flashing leaks.

Roof shingles have blown off.

Defective shingles.

Standing water on built-up roofs.

5.7 Sheet MetalGutters and downspouts leak.

Water remains in gutters after a rain.

Bows exceeding 1/2-inch in 32-inchesare deficiencies.

Nail stains exceeding 1/2-inch inlength and visible from a distance of20-feet are deficiencies.

Roof or flashing leaks that occurunder normal weather conditionsare deficiencies.

Shingles shall not blow off in windsless than the manufacturer's standardsor specifications.

NONE. NO COVERAGE.

Water shall drain from a flat or low-pitched roof within 24-hours ofa rainfall.

Gutters and downspouts that leakare deficiencies.

Small amounts of water may remain insome sections of gutter for a short timeafter a rain. Standing water in guttersshall not exceed 1/2-inch in depth.

Builder/Contractor will repair bowedsiding to meet standard. Ifreplacement of siding is required,Builder/Contractor will matchoriginal material as closely aspossible. Homeowner should beaware that the new finish may notexactly match the original surfacetexture or color.

Builder/Contractor shall correct byeither removing stains, painting, orstaining the affected area.Builder/Contractor shall match colorand finish as closely as possible.Where paint or stain touch up affectsthe majority of the wall surface, thewhole area shall be refinished.

Correct any roof or flashing leaks thatare verified to have occurred undernormal weather conditions.

Builder/Contractor will replaceshingles that blow off in winds lessthan the manufacturer's standards orspecifications only if improperinstallation is shown to be thecause.Shingles that blow off in windsless than the manufacturer's standardsor specifications due to amanufacturing defect in the shinglesare the manufacturer's responsibility.

NONE

Builder/Contractor will takecorrective action to assure properdrainage of the roof.

Repair leaks in gutters and downspouts.

Builder/Contractor will repair guttersto assure proper drainage.

Bowed siding due to Homeowner'sactions or neglect, such as bowingcaused by sprinkler system repeatedlywetting siding, is not a deficiency.

"Natural weathering" or semi-transparent stains are excludedfrom coverage.

Where cause of leaks is determined toresult from severe weather conditionssuch as ice and snow build-up, highwinds and driven rains, such leaks arenot deficiencies.

Shingles that blow off in hurricanes,tornadoes, hailstorms, or winds,including gusts greater than 60 milesper hour, are not deficiencies.Homeowners should consult shinglemanufacturer's warranty forspecifications, standards, andmanufacturer's warranty responsibilityif shingles blow off in higherwind speeds.

Manufacturing defects in shingles arenot covered under this Warranty.Homeowners should consult shinglemanufacturer's warranty forspecifications, standards, andmanufacturer's warranty responsibility.

Minor ponding or standing of water isnot considered a deficiency.

Homeowner is responsible for keepinggutters and downspouts free fromdebris that would obstruct drainage.



6. Doors and Windows6.1 Doors: Interior and ExteriorWarpage of interior or exterior doors.

Door binds against jamb or head offrame or does not lock.

Door panels shrink and exposebare wood.

Door panels split.

Bottom of doors drag on carpet surface.

Excessive opening at the bottom ofinterior doors.

6.2 Garage Doors Garage door fails to operate orfit properly.

6.3 Wood, Plastic and Metal WindowsWindow is difficult to open or close.

Interior and exterior doors that warpso as to prevent normal closing and fitare deficiencies. The maximumallowable warpage of an interior dooris 1/4-inch when measured fromcorner to corner.

Passage doors that do not open andclose freely without binding againstthe doorframe are deficiencies. Lockbolt is to fit the keeper to maintain aclosed position.

NONE.

Door panels that have split to allowlight to be visible through the doorare deficiencies.

Where it is understood byBuilder/Contractor and theHomeowner that carpet is planned tobe installed as floor finish byBuilder/Contractor, the bottom ofthe doors that drag on the carpetare deficiencies.

Passage doors from room to room thathave openings between the bottom ofthe door and the floor finish material inexcess of 1 1/2-inches are deficiencies.Closet doors having an opening inexcess of 2-inches are deficiencies.

Garage doors that do not operate andfit the door opening within themanufacturer's installation tolerancesare deficiencies. Some entrance of theelements can be expected under heavyweather conditions and is notconsidered a deficiency.

Windows should require no greateroperating force than that described inthe manufacturer's specifications.

Repair or replace as may be required.New doors to be refinished to matchthe original as closely as possible.

Adjust door and keeper tooperate freely.

NONE.

If light is visible, fill crack and finishpanel to match as closely as possible.Correct one time only during first yearof Warranty Coverage.

Undercut doors as required.

Make necessary adjustment or replacedoor to meet the required tolerance.

Make necessary adjustments to meet themanufacturer's installation tolerances.

Builder/Contractor shall correct orrepair as required to meetmanufacturer's specifications.

Wood doors may stick duringoccasional periods of high humidity.

Door panels will shrink due to thenature of the material, exposing barewood at the edges and arenot deficiencies.

Where carpet is selected by theHomeowner having excessive highpile, the Homeowner is responsiblefor any additional door undercutting.

No adjustment is required when causeis determined to result from anyonebut Builder/Contractor orBuilder/Contractor subcontractor'sinstallation of an electric door opener.


20

21


Double hung windows do not stay inplace when open.

Condensation or frost on windowframes and glass.

6.4 HardwareHardware does not work properly, failsto lock or perform its intended purpose.

6.5 Storm Doors, Windows and ScreensStorm doors, windows and screens donot operate or fit properly.

6.6 Weather-stripping and SealsDrafts around doors and windows.

6.7 Glass and GlazingClouding and condensation on insidesurfaces of insulated glass.

7. Finishes7.1 Lath and PlasterCracks in plaster wall andceiling surfaces.

7.2 DrywallDrywall cracks.

Double hung windows are permitted tomove within a two-inch tolerance, upor down when put in an open position.Any excessive movement exceedingthe tolerance is a deficiency.

NONE.

All hardware installed on doors andwindows that do not operate properlyare deficiencies.

Storm doors, windows and screens,when installed, which do not operateor fit properly to provide theprotection for which they areintended, are considered deficiencies.

Some infiltration is usually noticeablearound doors and windows, especiallyduring high winds. No daylight shallbe visible around frame when windowor exterior door is closed.

Insulated glass that clouds up or hascondensation on the inside surfaces ofthe glass is a deficiency.

Hairline cracks are not unusual.Cracks in plaster wall and ceilingsurfaces exceeding 1/16-inch in widthare deficiencies.

Hairline cracks are not unusual.Cracks in interior gypsum board orother drywall materials exceeding1/16-inch in width are deficiencies.

Adjust sash balances one time onlyduring the first year of WarrantyCoverage. Where possible, instructthe Homeowner on the method ofadjustment for future repair.

NONE.

Builder/Contractor shall adjust, repair,or replace hardware as required.

Builder/Contractor shall makenecessary adjustments for proper fitand operation. Replace whenadjustment cannot be made.

Builder/Contractor shall repair tomeet Performance Guideline.

Builder/Contractor shall replace glassin accordance with window and glassmanufacturer's requirements.

Builder/Contractor shall repair cracksthat are greater than 1/16-inch in widthand touch up paint to match as closelyas possible, one time only. Suchconditions should be reported near theend of the first year of WarrantyCoverage to allow for normalmovement in the Home Improvement.

Builder/Contractor shall repair cracksthat are greater than 1/16-inch inwidth and touch up paint to match asclosely as possible, one time only.Such conditions should be reportednear the end of the first year ofWarranty Coverage to allow for normalmovement in the Home Improvement.

Window glass and frames will collectcondensation on the frame and glasssurface when humidity andtemperature differences are present.Condensation is usually the result oftemperature/humidity conditions inthe home.

Missing screens, rips or gouges inthe screen mesh are not covered bythis Warranty.

In high wind areas, the homeownermay need to have storm windows anddoors installed to eliminate drafts.


22


Nail pops, blisters, or other blemish isvisible on finished wall or ceiling.

Cracked corner bead, excess jointcompound, trowel marks, or blistersin tape joints.

7.3 Hard Surfaces Flagstone, Marble, Quarry Tile, Slate,or other hard surface flooring isbroken or loose.

Cracks appear in grouting of ceramictile joints or at junctions with othermaterial such as a bathtub, shower,or countertop.

7.4 Resilient FlooringNail pops appear on the surface ofresilient flooring.

Depressions or ridges appear in theresilient flooring due tosubfloor irregularities.

Resilient flooring or baseloses adhesion.

Nail pops and blisters that arereadily visible from a distance of 6feet under normal lightingconditions are deficiencies.

Cracked or exposed corner bead,trowel marks, excess jointcompound, or blisters in drywalltape, are deficiencies.

Tile, flagstone, or similar hardsurfaced sanitary flooring that cracksor becomes loose is a deficiency.Subfloor and wallboard are requiredto be structurally sound, rigid, andsuitable to receive finish.

Cracks in grouting of ceramic tile jointsare deficiencies. Regrouting of thesecracks is a maintenance responsibilityof the Homeowner after theBuilder/Contractor has regrouted once.

Readily apparent nail popsare deficiencies.

Readily apparent depressions orridges exceeding 1/8-inch are adeficiency. The ridge or depressionmeasurement is taken as the gapcreated at one end of a 6-inch straightedge placed over the depression orridge with 3-inches on one side of thedeficiency held tightly to the floor.

Resilient flooring or base that lifts,bubbles, or becomes unglued isa deficiency.

Builder/Contractor will repair suchblemishes, and touch up paint to matchas closely as possible, one time only.Such conditions should be reportednear the end of the first year ofWarranty Coverage to allow for normalsettlement of the Home Improvement.Builder/Contractor will repair to meetPerformance Guideline, and touch uppaint to match as closely as possible,one time only. Such conditionsshould be reported near the end of thefirst year of Warranty Coverage toallow for normal settlement of theHome Improvement.

Builder/Contractor shall replacecracked tiles, marble, or stone andresecure loose tiles, marble, orstone flooring.

Builder/Contractor shall repair groutingas necessary one time only within thefirst year of the Warranty Coverage.

Builder/Contractor shall correct nailpops that have caused damage to thefloor material and repair or replacedamaged floor covering in theaffected area. Builder/Contractor isnot responsible for discontinuedpatterns or color variations.

Builder/Contractor shall takerequired action to bring thedeficiency within acceptabletolerances so as to be not readilyvisible. Builder/Contractor is notresponsible for discontinued patternsor color variations in the floorcovering, Homeowner neglect orabuse, nor installations performedby others.

Builder/Contractor shall repair orreplace resilient flooring or base asrequired. Builder/Contractor is notresponsible for discontinued patternsor color variations.

Depressions or slight mounds at nailheads are not considereddeficiencies. Builder/Contractor isnot responsible for nail pops orblisters that are not visible, such asthose covered by wallpaper.

Cracking and loosening of flooringcaused by the Homeowner's negligenceis not a deficiency. Builder/Contractoris not responsible for color and patternvariations or discontinued patterns ofthe manufacturer.

Open cracks or loose grouting, wherethe wall surface abuts the flashing lipat a tub, shower basin, or countertopare considered Homeownermaintenance and any resultant damageto other finish surfaces due to leaks,etc. are not considered deficiencies.


23


Seams or shrinkage gaps show atresilient flooring joints.

7.5 Finished Wood FlooringCupping, open joints, or separationsin wood flooring.

7.6 PaintingKnot and wood stains appear throughpaint on exterior.

Exterior paint or stain peelsor deteriorates.

Painting required as corollary repairbecause of other work.

Mildew or fungus forms on painted orfactory finished surfaces.

Gaps in excess of 1/16-inch in widthin resilient floor covering joints aredeficiencies. Where dissimilarmaterials abut, a gap in excess of 1/8-inch is a deficiency.

Open joints or separations betweenfloorboards of finished woodflooring shall not exceed 1/8-inch inwidth. Cups in strip floorboards shallnot exceed 1/16-inch in height in a 3-inch maximum distance whenmeasured perpendicular to the lengthof the board.

Excessive knot and wood stains thatbleed through the paint areconsidered deficiencies.

Exterior paints or stains that peel ordeteriorate during the first year ofownership are deficiencies.

Necessary repair of a painted surfaceunder this Warranty is to be refinishedto match surrounding areas as closelyas possible.

NONE. NO COVERAGE.

Builder/Contractor shall repair orreplace the resilient flooring to meetthe Performance Guideline.Builder/Contractor is not responsiblefor discontinued patterns or colorvariations of floor covering. Properrepair can be affected by sealing gapwith seam sealer.

Builder/Contractor shall determinethe cause and if the result of adeficiency in workmanship ormaterial, correct one time only. Forrepairable deficiencies, repair cracksby filling and refinishing to match thewood surface as closely as possible.For non-repairable deficiencies,replace and finish affected area tomatch remaining flooring as closelyas possible.

Builder/Contractor shall seal affectedareas where excessive bleeding ofknots and stains appear and touch-uppaint to match as closely as possible.

Builder/Contractor shall properlyprepare and refinish affected areas,matching color as closely as possible.Where finish repairs affect themajority of the surface areas, thewhole area should be refinished. TheWarranty on the newly repaintedsurfaces will not extend beyond theoriginal Warranty period.

Builder/Contractor shall refinishrepaired areas to meet the standardas required.

NONE.

Wood floors are subject to shrinkageand swell due to seasonal variations inthe humidity level of the home. Whileboards may be installed tight together,gaps or separations may appear duringheating seasons or periods of lowhumidity. Gaps or separations thatclose during non-heating seasons arenot considered deficiencies.Homeowners should be familiar withthe recommended care andmaintenance requirements of theirwood floor. Repeated wetting anddrying, or wet mopping may damagewood finishes. Dimples or scratchescan be caused by moving furniture ordropping heavy objects, and certainhigh heel style shoes may causeindentations. These conditions are notcovered by this Warranty.

Fading, however, is normal andsubject to the orientation of paintedsurfaces to the climactic conditionswhich may prevail in the area. Fadingis not a deficiency.

Mildew or fungus that forms on apainted or factory finished surfacewhen the surface is subject to variousexposures (e.g.: ocean, lake,riverfront, heavily wooded areas ormountains) is not a deficiency.


24


Deterioration of varnish orlacquer finishes.

Interior paint coverage.

Paint splatters and smears onfinish surfaces.

7.7 Wall CoveringPeeling of wallcovering installed byBuilder/Contractor.

Patterns in wallcovering aremismatched at the edges.

Lumps and ridges and nail pops inwallboard that appear after theHomeowner has wallcoveringinstalled by others.

7.8 CarpetingCarpet does not meet at the seams.

Color variations in carpet.

Natural finish on interior woodworkthat deteriorates during the first year ofthe Warranty Coverage is a deficiency.

Wall, ceiling, and trim surfaces thatare painted shall not show throughnew paint when viewed from adistance of 6-feet under normallighting conditions.

Paint splatters on walls, woodwork, orother surfaces which are excessive,shall not be readily visible whenviewed from a distance of 6-feetunder normal lighting conditions.

Peeling of wallcovering is adeficiency, unless it is due to theHomeowner's abuse or negligence.

Patterns in wallcovering shall matchat the edges.

NONE. NO COVERAGE.

It is not unusual for carpet seams toshow. However, a visible gap oroverlapping at the seam due toimproper installation is a deficiency.

NONE. NO COVERAGE.

Builder/Contractor shall refinishaffected areas of natural finishedinterior woodwork, matching thecolor as closely as possible.

Builder/Contractor shall repaintwall, ceiling or trim surfaces whereinadequate paint has been applied.Where the majority of the wall orceiling surface is affected the entirearea will be painted from breaklineto breakline. Builder/Contractor isnot required to repaint an entireroom unless all walls and ceilinghave been affected.

Builder/Contractor shall remove paintsplatters without affecting the finish ofthe material, or replace the damagedsurface if paint cannot be removed.

Builder/Contractor shall repair orreplace defective wallcovering.

Builder/Contractor shall removemismatched wallcovering andreplace. Builder/Contractor is notresponsible for discontinued orvariations in color.

NONE.

Builder/Contractor shall correct toeliminate visible gap or overlapping atthe seam.

NONE.

Varnish-type finishes used on exteriorsurfaces will deteriorate rapidly andare not covered by the Warranty.

Minor paint splatter and smears onimpervious surfaces that can be easilyremoved by normal cleaning methodsare considered to be Homeownermaintenance and are not deficiencies.

Defects in the wallcovering patterns arethe manufacturer's responsibility, andexcluded from Warranty Coverage.

The Homeowner shall insure that thesurface to receive wallcovering issuitable and assumes fullresponsibility should lumps, ridges,and nail pops occur at a later date.

Carpet material is not covered underthe Warranty.

Colors may vary by dye lot, and fromone end to another in the same roll.Side to side shading may show atmost if not all seams, even where thesame dye lot is used. Carpet materialis not covered under the Warranty.Homeowners should consult carpetmanufacturer's warranty forspecifications, standards, andmanufacturer's warranty responsibilityfor color variations.


25


Carpeting loosens, or thecarpet stretches.

8. Specialties8.1 FireplacesFireplace or chimney does not drawproperly causing smoke to enter home.

Chimney separation from structure towhich it is attached.

Cracks in masonry hearth or facing.

8.2 Wood DecksWood deck is springy or shaky.

Spaces between decking arenot uniform.

When stretched and secured properly,wall-to-wall carpeting installed as theprimary floor covering shall not comeup, loosen, or separate from the pointsof attachment.

A properly designed and constructedfireplace or chimney shall functioncorrectly. High winds can causetemporary negative or down drafts.Negative drafts can also be caused byobstructions such as tree branches,steep hillsides, adjoining homes, andinterior furnaces. In some cases, itmay be necessary to open a windowslightly to create an effective draft.Since negative draft conditions couldbe temporary, it is necessary for thehomeowner to substantiate theproblems to the Builder/Contractor byconstructing a fire so the conditioncan be observed.

Newly built fireplaces will often incurslight amounts of separation.Separation that exceeds 1/2-inch fromthe main structure in any 10-footvertical measurement is a deficiency.

Small hairline cracks in mortar jointsresulting from shrinkage are notunusual. Cracks in stone or brickhearth or facing greater than 1/4-inchin width are deficiencies.

All structural members in a wooddeck shall be sized, and fastenersspaced, according to appropriatebuilding codes, National Forest andPaper Association span tables, or ahigher guideline agreed upon beforeconstruction by the Homeowner andBuilder/Contractor.

The spaces on opposite sides ofindividual deck boards shall notdiffer in average width by more than3/16-inch at the time the deck iscomplete, unless otherwise specifiedby Homeowner.

Builder/Contractor will restretch orresecure carpeting to meet PerformanceGuideline one time only during the firstyear of Warranty Coverage.

When determined the malfunction isbased upon improper construction ofthe fireplace, the Builder/Contractorshall take the necessary steps tocorrect the problem.

Builder/Contractor shall correct.Caulking or grouting is acceptableunless the cause of the separation isdue to Structural Failure of thechimney foundation. In that case,caulking is unacceptable.

Builder/Contractor will repair cracksexceeding standard by pointing orpatching. Builder/Contractor is notresponsible for color variationsbetween existing and new mortar.

Builder/Contractor will reinforce ormodify, as required, any wood decknot meeting Performance Guideline.

Builder/Contractor will realign orreplace decking boards to meet thePerformance Guideline.

When it is determined that thefireplace is properly designed andconstructed, but still malfunctions dueto natural causes beyondBuilder/Contractor's control,Builder/Contractor is not responsible.

Heat and flames from normal fires cancause cracking of firebrick and mortarjoints. This should be expected, and isnot covered by this Warranty.

Deflection within the limits establishedby the span tables is not a deficiency.

Spaces will naturally tend to changeover time because of shrinkage andexpansion of individual boards.Builder/Contractor is onlyresponsible for correct spacing at thetime of installation.


26


Wood deck is out of level.

Railings on wood decking containslivers in exposed areas.

9. Cabinets and Vanities9.1 Kitchen Cabinets and VanitiesKitchen and vanity cabinet doors anddrawers bind.

Warping of kitchen and vanity cabinetdoors and drawer fronts.

Gaps between cabinets, ceilingand walls.

9.2 CountertopsSurface cracks and delaminations inhigh-pressure laminates of vanity andkitchen cabinet countertops.

10. Mechanical 10.1 PlumbingFaucet or valve leak.

Defective plumbing fixtures,appliances or trim fittings.

10.2 Water SupplyStaining of plumbing fixtures due tohigh iron, manganese, or othermineral content in water.

No point on the deck surface shall bemore than 1/2 inch higher or lowerthan any other deck surface pointwithin 10 feet on a line parallel to thehome, unless the Homeowner andBuilder/Contractor agree tointentionally build a wood deck out oflevel in order to match or compensatefor inaccuracies in existing structure.

Railings on wood decks shall notcontain slivers longer than 1/8 inchin exposed areas at the time the jobis accepted.

Cabinet doors and drawers shall openand close with reasonable ease.

Warpage that exceeds 1/4-inch asmeasured from the face of the cabinetframe to the furthermost point ofwarpage on the drawer or door frontin a closed position is a deficiency.

Countertops, splashboards, base andwall cabinets are to be securelymounted. Gaps in excess of 1/4-inchbetween wall and ceiling surfaces area deficiency.

Countertops fabricated with high-pressure laminate coverings thatdelaminate or have surface cracks orjoints exceeding 1/16-inch betweensheets are considered deficiencies.

A valve or faucet leak due to materialor workmanship is a deficiency and iscovered only during the first year ofthe Warranty.

Fixtures, appliances, or fittings shallcomply with their manufacturer'sstandards as to use and operation

NONE. NO COVERAGE.

Builder/Contractor will repair thedeck as necessary to meet thePerformance Guideline.

Builder/Contractor will repair railingsas necessary to remove slivers prior toacceptance of the job.

Builder/Contractor shall adjust orreplace doors and drawers as necessaryto meet Performance Guidelines.

Builder/Contractor shall correct orreplace door or drawer frontas required.

Builder/Contractor shall makenecessary adjustment of cabinets andcountertop or close gap by means ofmolding suitable to match the cabinetor countertop finish, or as closely aspossible; or other acceptable means.

Builder/Contractor shall repair orreplace laminated surface coveringhaving cracks or joints exceeding theallowable width.

Builder/Contractor shall repair orreplace the leaking faucet or valve.

NONE.

NONE. High iron and manganesecontent in the water supply system willcause staining of plumbing fixtures.

A slop of approximately 1/8-inch perfoot in the perpendicular direction isdesirable to shed water and preventice build-up, and is not a deficiency.

Slivers can develop from weatheringof unprotected wood. Repair ofslivers after acceptance of the job is aHomeowner maintenance responsibility.

Leakage caused by worn or defectivewashers or seals are Homeownermaintenance item.

Defective plumbing fixtures, appliances,and trim fittings are covered undertheir manufacturer's warranty.

Maintenance and treatment of the wateris the Homeowner's responsibility.


27


Noisy water pipes.

10.3 Heating and Air ConditioningInadequate heat.

Inadequate cooling.

Ductwork and heating piping notinsulated in uninsulated area.

Condensate lines clog up.

Some noise can be expected from thewater pipe system, due to the flow ofwater. However, the supply pipesshould not make the pounding noisecalled "water hammer". "Waterhammer" is a deficiency covered onlyduring the first year of the Warranty.

A heating system shall be capable ofproducing an inside temperature of atleast 70-degrees Fahrenheit asmeasured in the center of anyhabitable room that was part of theHome Improvement at a height of fivefeet above the floor under localoutdoor winter design conditions.NOTE FOR HEATING: There maybe periods when the outdoortemperature falls below the designtemperature, thereby lowering thetemperature in the room.

When air conditioning is provided,the cooling system is to be capable ofmaintaining a temperature of 78-degrees Fahrenheit as measured in thecenter of any habitable room that waspart of Home Improvement at heightof five feet above the floor, underlocal outdoor summer designconditions. NOTE FOR AIRCONDITIONING: In the case ofoutside temperatures exceeding 95-degrees Fahrenheit, the system shallkeep the inside temperature 15-degrees cooler than the outsidetemperature. National, state, or localrequirements shall supersede thisguideline where such requirementshave been adopted by the localgoverning agency.

Ductwork and heating pipes that arerun in uninsulated crawl spaces,garages or attics are to be insulated.Basements are not "uninsulatedareas", and no insulation is required.

NONE. NO COVERAGE.

Builder/Contractor shall correct toeliminate "water hammer."

Builder/Contractor is not responsiblefor inadequate performance of anexisting heating system, where therewas a modification, alteration orextension of an existing system forwhich Builder/Contractor did notprovide overall system redesign and didnot install new heating units of greatercapacity to handle additional heatingloads.Where Builder/Contractorinstalled or increased capacity ofexisting system, Builder/Contractorshall correct heating system asrequired to provide the requiredtemperatures if a deficiency exists.

Builder/Contractor is not responsiblefor inadequate performance of anexisting air conditioning system,where there was a modification,alteration or extension of an existingsystem for which Builder/Contractordid not provide overall systemredesign and did not install newcooling units of greater capacity tohandle additional cooling loads.

Where Builder/Contractor installed orincreased capacity of existing system, Builder/Contractor shall take correctcooling system to meet thePerformance Guideline during thefirst year of Warranty Coverage.

Builder/Contractor shall installrequired insulation.

Builder/Contractor shall provideclean and unobstructed lines onWarranty Effective Date.

Noises due to water flow andpipe expans ion a re no tconsidered deficiencies.

Orientation of home and location ofroom that was part of HomeImprovement will also provide atemperature differential, especiallywhen the heating system is controlledby a single thermostat for one or morefloor levels. The Homeowner isresponsible for balancing dampersand registers and for making othernecessary minor adjustments.

Orientation of home and location ofroom that was part of HomeImprovement will also provide atemperature differential, especiallywhen the air-conditioning system iscontrolled by a single thermostat forone or more levels. The Homeowneris responsible for balancing dampersand registers and for making othernecessary minor adjustments.

Condensate lines will clog undernormal conditions. The Homeowneris responsible for continued operationof drain lines.


28


Improper mechanical operation ofevaporative cooling system.

Ductwork makes noises.

Ductwork makes excessively loudnoises known as "oil canning".

11. Electrical Components11.1 Switches and ReceptaclesFuses blow, or circuit breakers trip.

Drafts from electrical outlets.

Malfunction of electrical outlets,switches, or fixtures.

Light fixture tarnishes.

11.2 Service and DistributionGround fault interrupter trips frequently.

Equipment that does not functionproperly at temperature standard set isa deficiency.

NONE. NO COVERAGE.

The stiffening of the ductwork andthe gauge of metal used shall be suchthat ducts do not "oil can". Thebooming noise caused by oil canningis a deficiency.

Fuses and circuit breakers thatdeactivate under normal usage, whenreset or replaced are deficiencies duringthe first year of the Warranty Coverage.

NONE. NO COVERAGE.

All switches, fixtures and outlets thatdo not operate as intended areconsidered deficiencies only during thefirst year of the Warranty Coverage.

NONE. NO COVERAGE.

Ground fault interrupters are sensitivesafety devices installed into theelectrical system to provide protectionagainst electrical shock. Thesedevices are sensitive and can betripped very easily. Ground faultoutlets that do not operate as intendedare considered deficiencies.

Builder/Contractor shall correct andadjust so that blower and watersystem operate as designed during thefirst year of the Warranty Coverage.

NONE.

Builder/Contractor shall take thenecessary steps to eliminate noisecaused by oil canning.

Builder/Contractor is not responsiblefor blown fuses or circuit breakersunless existing system was upgraded tocode and required capacity byBuilder/Contractor. Builder/Contractorshall check all wiring and replacewiring or breaker if it does not performadequately or is defective.

NONE.

Builder/Contractor shall repair orreplace defective switches, fixturesand outlets.

NONE.

Builder/Contractor shall replace thedevice if defective during the firstyear of the Warranty.

When metal is heated, it expands, andwhen cooled, it contracts. Theresulting "ticking" or "crackling"sounds generally are to be expectedand are not deficiencies.

The electrical junction box onexterior walls may produce a slightairflow whereby the cold air can bedrawn through the outlet into aroom. This problem is normal in newHome construction.

Finishes on light fixtures maybe covered under theirmanufacturer's warranty.


29

ITEMS COVERED UNDER THE 2-YEAR SYSTEMS COVERAGE


12. Mechanical Systems12.1 Septic Tank SystemsSeptic systems fail to operate properly.

12.2 PlumbingWater in plumbing pipes freezes, andthe pipes burst.

Septic system should be capable ofproperly handling normal flow ofhousehold effluent.

Drain, waste, vent, and water pipesshall be adequately protected toprevent freezing and bursting duringnormally anticipated cold weather.

Builder/Contractor is not responsiblefor inadequate performance of anexisting septic system, includingsystems to which additional fixtures;appliances or other sources of waste areconnected, unless the capacity of theexisting system has been increasedby the Builder/Contractor as partthe Home Improvement. WhereBuilder/Contractor installed newsystem or increased capacity of existingsystem, Builder/Contractor shall takecorrective action if it is determined thatmalfunction is due to a deficiency inworkmanship or materials supplied byBuilder/Contractor, or failure toconstruct system in accordance withstate, county, or local requirements.Builder/Contractor is not responsiblefor malfunctions or limitations in theoperation of the system attributable todesign restrictions imposed by state,county, or local governing agencies.Builder /Contractor is not responsiblefor septic system deficienciesattributable to failure of any part ofexisting system that was not upgradedor replaced, or deficiencies attributableto inadequacy or unsuitability ofexisting lot or home site for septicsystem. Builder/Contractor is also notresponsible for malfunctions whichoccur or are caused by conditions beyondBuilder/Contractor's control, including,Homeowner negligence, abuse, freezing,soil saturation, changes in ground watertable, or other acts of nature.

Builder/Contractor shall correct conditionsnot meeting Performance Guideline.

The Homeowner is responsible forperiodic pumping of the septic tankand a normal need for pumping is nota deficiency. The following areconsidered Homeowner negligence orabuse as exclusion under theWarranty: a.) excessive use of watersuch as overuse of washing machineand dishwasher, including theirsimultaneous use; b.) connection ofsump pump, roof drains or backwashfrom water conditioner, to the systemc.) placing of non-biodegradableitems in the system; d.) addition ofharsh chemicals, greases or cleaningagents, and excessive amounts ofbleaches or drain cleaners; e.) use of afood waste disposer not supplied byBuilder/Contractor; f.) placement ofimpervious surfaces over the disposalarea; g.) allowing vehicles to drive orpark over the disposal area; h.) failureto periodically pump out the septictank when required. Sewage pumpsare excluded under this Warranty.

Burst pipes due to Homeowner'sneglect and resultant damage are notBuilder/Contractor's responsibility.The Homeowner is responsible fordraining exterior faucets, andmaintaining suitable temperature in theHome to prevent water in pipes fromfreezing. During periods when theoutdoor temperature falls below thedesign temperature, the Homeowner isresponsible for draining or otherwiseprotecting pipes. Homes, which areperiodically occupied, such as summerhomes, or where there will be nooccupancy for an extended period oftime, must be properly winterized orperiodically checked to insure that areasonable temperature is maintained.

30

ITEMS COVERED UNDER THE 2-YEAR SYSTEMS COVERAGE


Leakage from any piping.

Sanitary sewers, fixtures, waste ordrain lines are clogged.

12.3 Water SupplyWater supply system fails todeliver water.

12.4 Heating and Air ConditioningRefrigerant lines leak.

Ductwork separates, becomes unattached.

13. Electrical System13.1 Electrical ConductorsFailure of wiring to carry itsdesigned load.

Leaks in any waste, vent and waterpiping are deficiencies.

The Builder/Contractor is notresponsible for sewers, fixtures, ordrains that are clogged because ofHomeowner's actions or negligence.Sanitary sewers, fixtures, waste ordrain lines that do not operate or drainproperly due to improper constructionare deficiencies.

All service connections to municipalwater main or private water supply areBuilder/Contractor's responsibilitywhen installed by Builder/Contractor.

B u i l d e r / C o n t r a c t o r - i n s t a l l e drefrigerant lines or ground loop pipesthat develop leaks during normaloperation are deficiencies.

Ductwork that is not intact or securelyfastened is a deficiency.

Wiring that is not capable of carryingthe designated load, for normalresidential use to switches, receptacles,and equipment, is a deficiency.

Builder/Contractor shall makenecessary repairs to eliminate leakage.

When defective construction is shownto be the cause, Builder/Contractorshall make necessary repairs.IfHomeowner's actions or negligence isthe cause, the homeowner isresponsible for correcting theproblem. Homeowner is liable for theentire cost of any sewer and draincleaning service provided byBuilder/Contractor where cloggeddrains are caused by Homeowner'sactions or negligence.

Builder/Contractor shall repair asrequired if failure to supply water isthe result of deficiency inworkmanship or materials.

Builder/Contractor shall repair leakinglines and recharge the unit as required.

Builder/Contractor shall reattach andre-secure all separated orunattached ductwork.

Builder/Contractor is not responsiblefor inadequate performance of anexisting electrical system, wherethere was a modification, alterationor extension of an existing system,which exceeds the capacity ofthe system (service, controls,circuits) unless system was upgradedto code and required capacityby Builder/Contractor. WhereBuilder/Contractor installed orincreased capacity of existing system,Builder/Contractor shall check wiringand replace if it fails to carrythe design load.

Condensation on piping does notconstitute leakage, and is not adeficiency, except where pipeinsulation is required.

Builder/Contractor is not responsiblefor sewer lines that extend beyondthe property lines on which the homeis constructed.

If conditions exist which disrupt oreliminate the sources of water supplythat are beyond Builder/Contractor'scontrol, then Builder/Contractor isnot responsible.

Leaks due to homeowner's actions ornegligence are excluded.

31

ADDRESS OF COMPLAINT __________________________________________________________________________________________

__________________________________________________________________________________________________________________

NATURE OF DEFECT (BE SPECIFIC) __________________________________________________________________________________

__________________________________________________________________________________________________________________

__________________________________________________________________________________________________________________

__________________________________________________________________________________________________________________

__________________________________________________________________________________________________________________

__________________________________________________________________________________________________________________

__________________________________________________________________________________________________________________

Attach any copies of relevant correspondence between you and your Builder/Contractor involving this matter. Please provide any correspondencethat indicates that your Builder/Contractor has failed to perform his/her warranty obligations, and a copy of the Limited Warranty CoverageValidation form.

DATE DEFECT FIRST OBSERVED

DATE FIRST REPORTED TO BUILDER/CONTRACTOR

HBW 805 07-31-06

Please read the 2-10 HBW® Home Improvement Warranty Booklet for filing instructions and pertinent information. If your previous writtenattempts to resolve your problems with the Builder/Contractor have failed, then this form is to be sent to your Builder/Contractor, with a copy tothe 2-10 HBW® Warranty Administration Office. This form must be received by your Builder/Contractor and 2-10 HBW® no later that thirty (30)days after the expiration of the applicable warranty term or the coverage will be denied. We recommend certified mail, return receipt requested.

NOTICE OF COMPLAINT FORMFOR HOME IMPROVEMENT

WARRANTY COVERAGEWorkmanship/Systems complaints only

HOME BUYERS WARRANTY CORPORATIONWarranty Administration Office


720-747-6000

(Date of Completion or First Use)

(City) (State)

(Street)

(Zip)

HOME PHONE ( ) BUSINESS PHONE ( )

EFFECTIVE DATE OF WARRANTY(Mo.) (Day) (Year)

NAME

Limited Warranty Coverage Validation Warranty #R

Homeowner Signature Date

Homeowner Signature Date

CHECK ONE (if applicable)1. FHA 2. VA 3. RHSCase #

If you are the original owner, and your Home has originalFHA-financing, please provide the following:Name of mortgage company:Address of mortgage company:

33

HBW 804 07-31-06

CHECK ONE (if applicable)1. FHA 2. VA 3. RHSCase #

If you are the original owner, and your Home has originalFHA-financing, please provide the following:Name of mortgage company:Address of mortgage company:

Please note that 2-10 HBW® provides Limited Structural Warranty Coverage which is subject to exclusions and conditions. You are encouraged toreview the Structural Coverage provisions of your Warranty Booklet.

Please answer the following questions:

1. Have you reviewed the Definition of a Structural Defect in your Warranty Booklet? Yes No

2. Do you believe that you have actual physical damage to one or more of the listed Yes Noload bearing portions of your home?

3. Have you reviewed the list of non-load-bearing elements which would not qualify as Yes Noa Structural Defect under this coverage?

4. Do you feel that your home is unsafe, unsanitary or otherwise unlivable as a result of the defect? Yes No

NATURE OF DEFECT (BE SPECIFIC; IF AVAILABLE, ENCLOSE PHOTOGRAPHS; ATTACH SEPARATE SHEET IF NECESSARY):

DATE DEFECT FIRST OBSERVED:

IT IS UNLAWFUL TO KNOWINGLY PROVIDE FALSE, INCOMPLETE, OR MISLEADING FACTS OR INFORMATION TO AN INSURANCE COMPANY FOR THE PURPOSE OF DEFRAUDING OR ATTEMPTING TO DEFRAUD THE COMPANY. PENALTIES MAY INCLUDE IMPRISONMENT, FINES, DENIAL OF INSURANCE, AND CIVIL DAMAGES. ANY INSURANCE COMPANY OR AGENT OF AN INSURANCE COMPANY WHO KNOWINGLY PROVIDES FALSE, INCOMPLETE, OR MISLEADING FACTS OR INFORMATION TO A POLICYHOLDER (BUILDER/CONTRACTOR) OR CLAIMANT (HOMEBUYER) FOR THE PURPOSE OF DEFRAUDING OR ATTEMPTING TO DEFRAUD THEPOLICYHOLDER ( BUILDER/CONTRACTOR) OR CLAIMANT (HOMEBUYER) WITH REGARD TO A SETTLEMENT OR AWARD PAYABLE FROM INSURANCE PROCEEDS SHALLBE REPORTED TO THE INSURANCE COMMISSIONER OF YOUR STATE.

Please read the 2-10 HBW® Home Improvement Warranty Booklet for filing instructions and pertinent information.

NOTICE OF CLAIM FORMFOR STRUCTURAL CLAIMS ONLY

HOME BUYERS WARRANTY CORPORATIONWarranty Administration Office


720-747-6000

HOME PHONE ( ) BUSINESS PHONE ( )

Limited Warranty Coverage Validation Warranty #R

YOUR NAME

ADDRESS OF CLAIM

(Street)

(City) (State)

EFFECTIVE DATEOF WARRANTY

(Mo.) (Day) (Year)(Date of Completion or First Use)

Homeowner Signature (Date)

Homeowner Signature (Date)

(Zip)

ion 2-10 hbw 807 remodel warranty

Documents